Moghadam Calls for Massive Changes in Iran’s Insurance Industry

Javad Sahamian Moghadam, Managing Director of Bimeh Iran, says the Iranian government should apply massive changes in domestic insurance industry in the hope of securing private-held companies’ interests. The current competitions between private and governmental insurance companies have led to an unfair contest.

“Unfortunately, the positions of state-owned and private-held insurance companies have not yet defined properly in Iran. Although some smaller insurance companies might have brilliant ideas for revolutionizing the industry, these facts limit smaller companies from competing with bigger insurance firms.” Javad Sahamian Moghadam, the CEO of Bimeh Iran, said on Sunday.

Moghadam believes that local companies must revise their policies toward establishing insurance companies. “For instance, local private banks and financial institutions are founding their own insurance companies. This measure not only helps them to make more money, but it increases the involved risks in this field.”

“On the other side, Iran lacks of experts and analysts in insurance industry. Schools and universities have failed to offer constructive courses in this regard. Human resource is an important element for progressing insurance industry in a country.” Javad Sahamian Moghadam added.

He also went on to ask Iranian private-held insurance companies to come up with more creativity. “In order to gain a market share in Iran’s saturated market, smaller companies should try to offer new and modern services to their clients.”

It is worth mentioning that five state-owned insurance firms dominate the sector, four of which are active in commercial insurance. The leading player is the Iran Insurance Company, followed by the Asia Insurance Company, the Alborz Insurance Company and the Dana Insurance Company.